Economic performance increases by 6.1% compared to a year earlier and by 0.7% compared to previous quarter
The volume of gross domestic product increased by 6.1% in Hungary in the 3rd quarter of 2021 compared to the corresponding period of the previous year. According to seasonally and calendar adjusted and reconciled data, the performance of the economy rose by 0.7% compared to the previous quarter and by 6.1% compared to the corresponding period of the previous year. In the 1st–3rd quarters of 2021, the economic performance was 7.1% higher (6.8% higher according to seasonally and calendar adjusted and reconciled data) than in the same period of the previous year.
In 3rd quarter 2021:
The volume of GDP grew by 6.1% compared to the corresponding period of the previous year. Compared with the 3rd-quarter figure issued in the flash estimate, the raw volume index in the second estimate was unchanged.1
GDP was 1.5% larger according to raw data than in the 3rd quarter of 2019, preceding the pandemic.
Production approach:
Industry increased its performance by 2.5%, within which manufacturing by 2.6% compared to the same period of the previous year. Among manufacturing branches, the largest contributor to the growth of industry was the increase in the manufacture of electrical equipment and fabricated metal products, except machinery and equipment. The value added of construction grew by 20.1% and that of agriculture decreased by 3.8% compared to the corresponding period of the previous year.
Table 1: Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| NACE | Industries | 2020 | 2021 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| III | IV | I | II | III | ||
| A | Agriculture, forestry and fishing | 90.5 | 93.0 | 102.6 | 101.3 | 96.2 |
| B–E | Manufacturing, mining and quarrying and other industry | 95.9 | 100.4 | 103.4 | 136.6 | 102.5 |
| C | Of which: manufacturing | 96.2 | 100.5 | 104.0 | 139.8 | 102.6 |
| F | Construction | 80.6 | 95.5 | 93.7 | 118.4 | 120.1 |
| G–T | Services, total, of which: | 96.9 | 95.9 | 97.0 | 112.6 | 106.8 |
| G | Wholesale and retail trade | 100.5 | 100.2 | 99.6 | 117.2 | 105.9 |
| H | Transportation and storage | 86.9 | 87.3 | 89.0 | 115.5 | 112.4 |
| I | Accommodation and food service activities | 66.7 | 39.0 | 52.4 | 171.1 | 121.6 |
| J | Information and communication | 105.1 | 106.6 | 101.8 | 116.9 | 115.2 |
| K | Financial and insurance activities | 103.8 | 104.0 | 103.4 | 103.6 | 106.3 |
| L | Real estate activities | 102.2 | 97.4 | 96.5 | 105.3 | 105.4 |
| M–N | Professional, scientific, technical and administrative activities | 92.7 | 96.3 | 94.9 | 117.2 | 108.7 |
| O | Public administration and defence | 102.4 | 102.8 | 102.2 | 101.6 | 100.2 |
| P | Education | 100.1 | 104.8 | 97.9 | 110.4 | 99.0 |
| Q | Health and social work activities | 94.3 | 87.8 | 102.1 | 127.7 | 105.8 |
| R–T | Arts, entertainment and other services | 87.7 | 86.4 | 89.2 | 117.5 | 106.5 |
| GDP, total (at purchasers’ prices) | 95.7 | 97.0 | 98.0 | 117.8 | 106.1 | |
The gross value added of services became 6.8% higher in total. The most marked increases occurred in the industries of accommodation and food service activities (21.6%), information and communication (15.2%) as well as transportation and storage (12.4%). The value added of professional, scientific, technical and administrative activities increased by 8.7%. The performance of arts, entertainment and other services was up by 6.5% and that of wholesale and retail trade by 5.9%. The performance of financial and insurance activities grew by 6.3%. The value added of public administration went up by 0.2% and that of human health and social work activities by 5.8%, mainly due to the performance of private health service providers (classified to the non-financial corporations or households sectors). The performance of education diminished by 1.0%.
Services contributed by 3.8 percentage points, construction by 1.0 percentage point and industry by 0.5 percentage point to the 6.1% growth of gross domestic product in the 3rd quarter of 2021. Within services, GDP was increased the most (by 0.8 percentage point) by wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as accommodation and food service activities.
Expenditure approach:
The actual final consumption of households rose by 5.0% compared to the same period of the previous year. Household final consumption expenditure, representing the largest proportion of the components of the actual final consumption of households, increased by 5.2%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 5.6% higher than a year earlier. The volume of domestic consumption expenditure grew in every durability group, that of services by 10.4%, the volume of semi-durable goods by 5.2%, that of durable goods by 3.1% and the volume of non-durable goods by 0.3%.
The volume of social transfers in kind from the government became 3.5% and that of the actual final consumption of the government 5.0% higher. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) increased by 5.2%.
As a result of the above trends, actual final consumption became 5.0% higher.
Gross fixed capital formation was up by 9.6% in the 3rd quarter compared to the corresponding period of the previous year. The volume of investments in construction went up to a higher extent than that of investments in machinery and equipment. Within investments, a growth was observed in almost all activities. Significant increases were recorded in the areas of manufacturing, transportation and storage, agriculture, wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as business services.
Gross capital formation became 20.1% higher compared to one year earlier.
As a result of the trends of consumption and capital formation, domestic use as a whole grew by 9.6% in the 3rd quarter.
Table 2: Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| Items of use | 2020 | 2021 | |||
|---|---|---|---|---|---|
| quarter | |||||
| III | IV | I | II | III | |
| Household final consumption expenditure | 98.1 | 97.1 | 93.7 | 108.5 | 105.2 |
| Social transfers in kind from government | 98.7 | 93.4 | 102.6 | 108.1 | 103.5 |
| Social transfers in kind from NPISHs | 103.4 | 103.4 | 107.3 | 106.9 | 105.2 |
| Actual final consumption of households | 98.4 | 96.7 | 95.7 | 108.3 | 105.0 |
| Actual final consumption of government | 104.8 | 101.3 | 107.5 | 100.6 | 105.0 |
| Actual final consumption, total | 99.4 | 97.5 | 97.4 | 107.0 | 105.0 |
| Gross fixed capital formation | 86.7 | 101.7 | 103.0 | 111.7 | 109.6 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 86.8 | 95.3 | 88.4 | 122.5 | 120.1 |
| Domestic use, total | 95.1 | 96.8 | 95.3 | 111.1 | 109.6 |
| Exports, of which: | 96.4 | 102.5 | 103.4 | 134.2 | 101.4 |
| Exports of goods | 103.7 | 111.5 | 110.1 | 135.7 | 98.8 |
| Exports of services | 73.8 | 72.1 | 75.8 | 126.9 | 113.0 |
| Imports, of which: | 95.7 | 102.3 | 100.5 | 124.3 | 105.6 |
| Imports of goods | 99.9 | 106.9 | 102.8 | 128.7 | 104.3 |
| Imports of services | 76.3 | 81.4 | 87.7 | 100.5 | 113.3 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 95.7 | 97.0 | 98.0 | 117.8 | 106.1 |
a) For these items the volume index is not applicable.
In the external trade of the economy a deficit was generated at current prices, its value was 292 billion forints. The volume of imports went up at a higher rate (5.6%) than that of exports (1.4%). In trade in goods, exports became 1.2% lower than a year earlier, while imports grew by 4.3%. Within the external trade of the economy, the exports of services (including tourism) rose by 13.0% and their imports by 13.3% compared to the same period of the previous year.
Actual final consumption contributed by 3.3 percentage points and gross capital formation by 6.0 percentage points to the 6.1% increase of gross domestic product in the 3rd quarter of 2021. The balance of external trade as a whole reduced the economic performance by 3.2 percentage points.
In 3rd quarter 2021 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy grew by 0.7%.
From the production approach, gross value added was up by 2.2% in services and decreased by 4.8% in agriculture, by 2.7% in industry and by 0.3% in construction.
From the expenditure approach, household final consumption expenditure and the volume of social transfers in kind from the government rose by 0.7% each and that of the actual final consumption of the government by 2.6% out of the components of actual final consumption. Gross fixed capital formation grew by 1.3%. In external trade, the volume of exports became 0.8% smaller and that of imports 1.2% larger.